Financial Due Diligence

Our Due Diligence Approach

Our Due Diligence Approach goes beyond GAAP accounting and incorporates a detailed assessment of business model risks. This approach is supported by: 

• Developing comprehensive work plans that deliver an insightful quality of earnings result as well as reconciliations of free cash flows.
• Assessing a target’s working capital components in detail with the intent of supporting the working capital peg calculations.
• Preparing bridge analyses of sales and earnings with each step supported by underlying analysis.
• Thoroughly analysing profitability by business segment, customer, product, or service, which is often fundamental to supporting our client’s investment thesis.

Focused attention on reserves and accruals on the balance sheet. Understanding all liabilities, on and off the balance sheet, as well as the quality of the assets is key to arriving at a final purchase price for an acquisition.